NORDIC HOTEL REPORT FIRST QUARTER Q1 218 COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM 1
Q 1 H I G H L I G H T S Q 1 H I G H L I G H T S Performance results in the first quarter of 218 varied across the Nordic markets. The Copenhagen, Oslo and Stockholm markets all experienced declines compared to 217, stabilizing as more capacity is being added. Helsinki realized the most significant improvement in RevPAR. RevPAR development in Q1 218 compared to Q1 217: > Copenhagen -4.% > Oslo -1.2% > Stockholm -7.7% > Reykjavik 1.3% > Helsinki 12.1% 2
M A R K E T I N D I C A T O R S - C O P E N H A G E N C O P E N H A G E N The Copenhagen hotel market experienced on average a decrease in all performance indicators in the first quarter of 218 compared to the same period the year before. The RevPAR decrease of 4% was mostly affected by occupancy, which fell by 3.8%. January experienced the least significant decline in occupancy but is still the month with the lowest occupancy rate of 63% on average. RevPAR decreased by 2.9% to DKK 49. February was by far the worst for development for RevPAR, which decreased by 11.2%. This was both due to significant decreases in occupancy (-6.%) and ADR (-5.6%). While the market indicators developed negatively in the first two months of the first quarter, March improved slightly with a RevPAR increase of 1.2% to DKK 672. This development was only driven by an increase in ADR; occupancy declined throughout the quarter. COPENHAGEN HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 63% -2.5 67% -6. 74% -3. 68% -3.8% ADR in DKK 775 -.4 776-5.6 92 4.3 828 -.2% RevPAR in DKK 49-2.9 521-11.2 672 1.2 565-4.% ADR in 14 14 121 111 RevPAR in 66 7 9 76 OCCUPANCY AVERAGE DAILY RATE (DKK) REVENUE PER AVAILABLE ROOM (DKK) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1, 9 8 7 6 5 4 3 2 1 8 7 6 5 4 3 2 1 217 218 217 218 217 218 3
M A R K E T I N D I C A T O R S - O S L O O S L O In the first quarter of 218, Oslo experienced a decline of 1.2% in RevPAR. While ADR increased by 3.2% to NOK 127, it was not enough to balance the 4.3% decline in occupancy. January improved the most with an increase of 6.1% in RevPAR, which was driven by a strong 4.% increase in ADR and 2.1% in occupancy. The same tendency holds true for February, where occupancy increased by a mere.1% and ADR improved by 2.6%, leading to a 2.7% increase in RevPAR. March, on the other hand, is the reason that the first quarter s RevPAR results on average decreased. ADR improved by 3.6%, but occupancy significantly decreased by a total of 12.9%, dropping occupancy to 63.9% in March. Except for March, the first quarter of 218 was strong in Oslo. OSLO HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 6.2% 2.1 66.9%.1 63.9% -12.9 63.6% -4.3% ADR in NOK 13 4. 123 2.6 154 3.6 127 3.2% RevPAR in NOK 64 6.1 684 2.7 674-9.8 653-1.2% ADR in 14 15 111 18 RevPAR in 62 7 71 69 OCCUPANCY AVERAGE DAILY RATE (NOK) REVENUE PER AVAILABLE ROOM (NOK) 8% 1,2 8 7% 6% 5% 4% 3% 2% 1% % 1, 8 6 4 2 7 6 5 4 3 2 1 217 218 217 218 217 218 4
M A R K E T I N D I C A T O R S - S T O C K H O L M S T O C K H O L M The Stockholm hotel market indicators were overall negative in the first quarter of 218. Stockholm experienced a 7.7% RevPAR drop to SEK 637. The drop was influenced by both occupancy (-5.3%) and ADR (-2.6%). While demand did grow by.9%, the was quickly outpaced by the 6.5% larger room capacity compared to 217. In January, occupancy decreased by 5.% and ADR by 1.4%. This lead to a drop of 6.4% to SEK 548 in RevPAR. This was the month least affected by the supply increase. February was impacted the most in the first quarter with a RevPAR decrease of 7.8%. This was a result of negative 5.5% development in occupancy and a 2.4% decrease in ADR. March similarly decreased by 4.6% in occupancy and 3.2% in ADR, settling on a RevPAR of SEK 692, which is -7.7% compared to 217 numbers. STOCKHOLM HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 51% -5. 58% -5.5 62% -4.6 57% -5.3% ADR in SEK 184-1.4 1144-2.4 1116-3.2 1115-2.6% RevPAR in SEK 548-6.4 661-7.8 692-7.7 637-7.7% ADR in 11 115 111 111 RevPAR in 56 67 69 63 OCCUPANCY AVERAGE DAILY RATE (SEK) REVENUE PER AVAILABLE ROOM (SEK) 7% 6% 5% 1,4 1,2 1, 8 7 6 5 4% 3% 2% 1% % 8 6 4 2 4 3 2 1 217 218 217 218 217 218 5
M A R K E T I N D I C A T O R S - R E Y K J A V I K R E Y K J A V I K In the first quarter of 218, RevPAR grew a modest 1.3% in Reykjavik compared to 217. The market is stabilizing after last year s extreme 25.3% RevPAR growth in the first quarter. While occupancy decreased by 4.5%, ADR is up 6.1% compared to 217. Still, occupancy remains high at 89% in the first quarter. January had the most negative effect on the overall market in the first quarter with a 3.1% decline in RevPar. This was driven by a 8.4% stagnation in occupancy but improved by a 5.8% increase in ADR. In February, the hotels realized a strong RevPAR increase of 8.6%. While occupancy also decreased slightly in February, ADR grew significantly with 1%, resulting in ISK 16,987. Similar to the first two months, occupancy decreased and ADR increased slightly in March, resulting in a -1.3% development in RevPAR. REYKJAVIK HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 76% -8.4 92% -1.2 87% -3.9 85% -4.5 ADR in ISK 15,411 5.8 16,987 1. 16,332 2.7 16,264 6.1 RevPAR in ISK 11,645-3.1 15,69 8.6 14,256-1.3 13,761 1.3 ADR in 53 136 133 132 RevPAR in 4 125 116 112 OCCUPANCY AVERAGE DAILY RATE (ISK) REVENUE PER AVAILABLE ROOM (ISK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 18, 16, 14, 12, 1, 8, 6, 4, 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, 217 218 217 218 217 218 6
M A R K E T I N D I C A T O R S - H E L S I N K I H E L S I N K I Helsinki s hotel market experienced very positive developments in the first quarter of 218. RevPAR increased by 12.1% to 72. While ADR only contributed with a.5% improvement, occupancy rose by a total of 11.5%. Both January and February proved positive as the RevPAR increased by 17.7% and 18.8%, respectively. ADR grew by a decent 2.6-3.1%, so the impressive RevPAR development was mostly driven by the strong increase in occupancy. Compared to the first two months of the year, March only improved by a moderate 2.2% in RevPAR. Occupancy continued to grow (by 5.6%) but ADR decreased by 3.2% to 19. HELSINKI HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 65% 14.1 68% 15.8 67% 5.6 67% 11.5 ADR in 17 3.1 19 2.6 19-3.2 19.5 RevPAR in 69 17.7 75 18.8 73 2.2 72 12.1 OCCUPANCY AVERAGE DAILY RATE (EUR) REVENUE PER AVAILABLE ROOM (EUR) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 12 1 8 6 4 2 1 8 6 4 2 217 218 217 218 217 218 7
N E W D E V E L O P M E N T S C O P E N H A G E N C O P E N H A G E N In the first quarter of 218, ATP Ejendomme and BC Hospitality Group announced a 4- room Hilton project in Copenhagen, which they hope to open in 22. Also Arp-Hansen announced the extension of one of its Wakeup hotels with an additional 25 rooms. All the confirmed projects in the pipeline for 219 are underway, but the pipeline for 22-221 is less certain with a total of more than 4, rooms. NEW DEVELOPMENTS IN COPENHAGEN Hotel Room No. Opening Year Charlottehaven 37 218 Scandic Meatpacking 37 218 Brøchner Hotels - Herman K 31 218 Total for 218 438 Arp-Hansen - Wakeup Kalvebod Brygge 585 219 Moxy Sydhavnen 233 219 CitizenM Dagmarhus 23 219 Scandic Falconer 334 219 Brøchner Hotels - Carlsbergbyen 156 219 Zleep Hotel Copenhagen Arena 21 219 Guldsmeden Bryggen 2 219 Total for 219 1948 Nordic Choice Hotels - Tietgensgade 37 38 22 Nordic Choice Hotels - Comfort Hotel Airport 5 22 Cabinn Hotel Kalvebod Brygge 12 22 Scandic Scanport (Copenhagen Airport) 357 22 Hilton Copenhagen City 4 22 Comwell Hotel Nordhavn 493 22 Arp-Hansen Wakeup Borgergade 25 22-221 Scandic Spectrum (Kalvebod Brygge) 632 221 Total for 22-221 4212 Grand total 6598 Source: NHC Data HILTON COPENHAGEN CITY COMFORT HOTEL COPENHAGEN AIRPORT 8
N E W D E V E L O P M E N T S O S L O O S L O In the first quarter of 218, three hotels have added new capacity to the Oslo market: Scandic Lillestrøm, Thon Hotel Europa, and Quality Airport Hotel Gardermoen. Just one more hotel is scheduled to open in Oslo this year. The pipeline is dominated by the usual suspects; local brands and operators will thus continue to dominate the market. In the first quarter, The Well Resort and an extension of Comfort Hotel Xpress were announced to open in 219, adding another 268 rooms to the pipeline. CLARION HOTEL BJØRVIKA NEW DEVELOPMENTS IN OSLO Hotel Room No. Opening Year Thon Hotel Linne 5 218 Total for 218 5 Nordic Choice - Amerikalinjen 124 219 Clarion Hotel Bjørvika by HAV Eiendom 253 219 Clarion Hotel The Hub 268 219 Thon Hotel Storo 321 219 The Well Resort 2 219 Comfort Hotel Xpress 68 219 Total for 219 1234 Nordic Choice - Sommerogaten 3 221 Økern Portal 25 221 Scandic Helsfyr 199 TBA Radisson Blu Hotel Oslo Plaza 335 TBA Total for 22 -> 184 Grand total 2368 Source: NHC Data SCANDIC PORTALEN 9
N E W D E V E L O P M E N T S - S T O C K H O L M S T O C K H O L M In Stockholm, the total pipeline is almost 24 rooms, 11 of which are set to open in 218. The additional capacity is set to slow down in the following years as a result of the large number of development projects in recent years. The market is stabilizing as demand needs to catch up to all the new supply. NOBIS GÄVLEGATAN NEW DEVELOPMENTS IN STOCKHOLM Hotel Room No. Opening Year Bank Hotel 11 218 Quality Hotel Friends 2 218 Nobis Gävlegatan 242 218 Comfort Hotel Kista 194 218 Kista Hotel Apartments 167 218 Best Western Solna (Humlegården Grow) 17 218 Radisson Blu Strand Hotel 18 218 Total for 218 111 Comfort Hotel Arlanda 463 219 Hotel Diplomat Östermalmshallen 71 219 Zleep Hotel Upplands Väsby 136 219 Total for 219 67 Hotel Tapetfabriken 152 TBA Ulriksdal hotel project Solna 213 TBA Vasakronan hotel project (SEB HQ) 25 TBA Grand total 2386 Source: NHC Data BEST WESTERN SOLNA 1
N E W D E V E L O P M E N T S - R E Y K J A V I K R E Y K J A V I K In Reykjavik, there are nearly 22 rooms in the confirmed pipeline. Most recently, Radisson RED announced its first property in Reykjavik to be opened in 22. Reykjavik Konsulat Hotel, part of the Curio Collection by Hilton, opened with 75 rooms in the first quarter of 218. Supply is only expected to grow with one more hotel in 218. ICELANDAIR PARLIAMENT - CURIO NEW DEVELOPMENTS IN REYKJAVIK Hotel Room No. Opening Year Grensásvegur 16 75 218 Total for 218 75 Vegamótastígur 7-9 4 218-219 Tryggvagata 17 219 Suðurlandsbraut 18 2 219 Laugavegur 176 118 219 Total for 219 465 Marriott Edition Reykjavik 25 219-22 Icelandair Parliament (Curio - a collection by Hilton) 16 219-22 Lækjargata (Islandshótel) 115 219-22 Radisson RED Reykjavik 195 22 Total for 22 72 Grensásvegur 1 3 TBA Hlíðarendi 36 TBA Grand Hotel (Islandshótel) 1 TBA Hallarmúli 15 TBA Grand total 217 Source: NHC Data GRENSÁSVEGUR 11
N E W D E V E L O P M E N T S - H E L S I N K I H E L S I N K I Four new properties have been confirmed to open as hotels, but when is yet to be announced for all of them. In total, 126 rooms are confirmed projects but expected opening year is TBA. Helsinki will steadily add more capacity annually. Currently, the numbers are 85 rooms a year on average between 218 and 22. NEW DEVELOPMENTS IN HELSINKI Hotel Room No. Opening Year St. George 15 218 Scandic Airport 148 218 Lapland Hotel Bulevardi 182 218 Hotel Hellsten Jätkäsaari 84 218 Total for 218 564 Hotel Kalasatama 2 218-219 Kuriiritie Hotel (Helsinki Airport) 2 219 Unioninkatu 12 219 Wood City Jätkäsaari 2 219 Spa Flamingo 219 219 Total for 219 939 Sokotel - Tripla Pasila 43 22 Scandic - Helsinki Central Railway Station 483 22 Total for 22 913 AB Invest AS - Hakaniemi Hotel 4 TBA Hotel Kruununhaka 118 TBA Primehotels - Jätkäsaari 35 TBA Vastint - Moxy Jätkäsaari 192 TBA Siltasaarenportti - Hakaniemi 2 TBA Grand total 3676 Source: NHC Data HAKANIEMI HOTEL (AB INVEST) WOOD CITY JÄTKÄSAARI 12
C O M P A R I S O N C I T Y C O M P A R I S O N The first quarter of 218 showed varying trends in the Nordics. While the Oslo, Stockholm, and Copenhagen markets decreased compared to 217, both Helsinki and Reykjavik developed for the better. In Reykjavik, the hotels achieved the highest RevPAR rate for the quarter with 112, followed by Copenhagen at 76. Helsinki increase in RevPAR secured a higher rate than both Oslo and Stockholm. 12 1 8 6 4 2. 18. 16. 14. 12. 1. 8. 6. ISK/EUR ADR rates are relatively similar in the first quarter, ranging between 19 and 111 among Copenhagen, Stockholm, Oslo, and Helsinki. Reykjavik s ADR rate reached 132, despite a drop in January due to a decrease in the exchange value. 2 27 28 29 21 211 212 213 214 215 216 217 4. 2.. Danish krone Swedish krona Norwegian krone US dollar Icelandic Krona OCCUPANCY AVERAGE DAILY RATE ( ) REVENUE PER AVAILABLE ROOM ( ) 1% 75% 5% 25% % 16 14 14 12 12 1 1 8 8 6 6 4 4 2 2 Copenhagen Stockholm Oslo Reykjavik Helsinki Copenhagen Stockholm Oslo Reykjavik Helsinki Copenhagen Stockholm Oslo Reykjavik Helsinki 13
N O R D I C H O T E L C O N S U L T I N G ABOUT NHC NHC was founded in 24 and is the leading specialized hotel consultancy in Scandinavia, with offices in Denmark, Norway, Sweden and Iceland. NHC has since 24 carried out a range of assignments including feasibility studies, appraisals, operator searches, contract negotiations, investment and transaction advisory and more in the Nordics and Europe. In 21, an Asset Management division was created in order to respond to an increasing demand and in 211 the Investment Advisory division was established. For additional information on NHC, please refer to our website: www.nordichotelconsulting.com. ABOUT BENCHMARKING ALLIANCE Benchmarking Alliance is the leading provider of hotel, conference, F&B and spa benchmarking as well as hospitality market data for the Nordic hospitality industry. The company was created in 21 by a team with broad background in hotels, real estate and IT. COPYRIGHT This report is the property of NHC and may not be reproduced in parts or whole prior to the written consent of NHC. DISCLAIMER NHC does not guarantee the accuracy of the data presented in this report and cannot be held liable here for any analysis, opinions or decisions derived from reading this report as it is solely at the responsibility of the reader to draw up conclusions. NHC cannot be held liable for any outcome of analysis, opinions and decisions formed based on the information presented in this report. NHC would like to inform the reader that the data from Benchmarking Alliance is collected in different ways and sometimes the figures can include provisions. This means that slight deviations in net ADR and RevPAR can occur. Denmark Sweden Norway Finland Iceland Nørre Voldgade 16 Birger Jarlsgatan 18 Ivan Bjørndals Gate 27 Vuoritie 6B Laufásvegur 38 1358 Copenhagen K 11434 Stockholm 472 Oslo 288 Veikkola 11 Reykjavik Denmark Sweden Norway Finland Iceland +45 45 82 11 72 +45 45 82 11 72 +47 484 4 48 +358 4 539 43 39 +354 89 77 41 Prepared by: NHC: info@nordichotelconsulting.com WWW.NORDICHOTELCONSULTING.COM